2016 MOD3 case Complete - Warehousing The traditional...

This preview shows page 1 - 3 out of 6 pages.

Warehousing The traditional warehouse was a holding station for inventory ordered well in advance of the company forecasting the sale. Most shipments were large, infrequent and labor intensive. The typical shipment between manufacturers was large and of low frequency, usually once a season. Once delivered, the client held the products in central warehouses or as inventory in individual stores. Traditional warehouses required hundreds of people, usually working in different shifts. In addition to loading and unloading trucks, a large number of jobs were devoted to receiving and inspecting incoming packages and stocking storage bins in the warehouse. A second group of workers was involved in “picking and packing,” that is, assembling outgoing orders for stores by going to storage areas and bins and picking the required items and packing them for outbound Page 1 of 6
Warehousing shipment (Caron, Perego 2000). Additional workers moved goods within the warehouse to adjust to space limitations arising from unexpected delays in shipping out orders, unexpected early arrival of goods, or holding unsold inventory. In today’s highly competitive global economy many companies are automating their basic warehousing functions to achieve the increases in throughput rates or inventory turns required for their warehousing operations to be cost effective. As the computer and the associated data-capture equipment are inserted into a warehouse system a fifth warehousing function begins to emerge. That is the function of managing the information necessary to operate and coordinate automated material handling systems and computerized inventory management systems. As higher levels of automation and computerization are introduced into our generation, managing the flow of information becomes just as important as managing the flow of materials. All warehouse operations strive to achieve the highest levels of inventory accuracy. The simple principle is that all physical movement or change in status of an item must be reflected in a transaction on the system. The transaction must be “time-and-date” stamped and referenced to the request that generated the movement. To assist warehouse workers in achieving the level of

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture